Spotify's Acquisition of Echo Nest


Spotify's acquisition of the Echo Nest (a leading music intelligence company, providing developers with the deepest understanding of music content and music fans) signals the growing importance of data in the music business as context becomes king in a world of virtually unlimited content. The Swedish on-demand music streaming service has plenty of content, about 20 million tracks, and is adding 20,000 new tracks a day. And Spotify, which has raised $538 million in funding since its founding in 2006, according to CrunchBase, by purchasing Echo Nest (which itself raised more than $25 million in funding), puts investors on notice that the company is consolidating its data play while increasing assets and putting itself ahead of rivals in preparation for what many assume will be an eventual IPO. Read more »

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